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Post Info TOPIC: Fact about Trial Balance?


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Fact about Trial Balance?
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In trial balance, the smaller between debit and credit must be subtracted from the larger one. What if they are equal? Do I need to subtract or write them both? Thanks.


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Hi

In a trial balance you want the two columns to be the same, so they balance each other.

If they don't, then there is a problem. There may also be a problem even if they do balance - a compensating error but it is the first check that all the transactions have been entered correctly.

If you are talking about the individual accounts that make up the trial balance then if they are equal, then there is nothing left on the account, so it is not necessary to enter it on the balance sheet. If you have a balancing amount, you need to enter the amount Bought Down  into the next accounting period.

HTH

Bill

-- Edited by Wella on Saturday 21st of August 2010 09:10:35 AM

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